In this video I discuss my top 3 dividend stocks to hold forever. Analyst see these 3 stocks as great companies that will continue growing into the future and will rewarding shareholders with great passive income. Analysts are bullish on these 3 dividend stocks and expect huge upside potential in the short term.
If you’re interested in investing into new dividend stocks there have been 3 stocks recently that have caught analysts attention. The first of which is Ellington Financial which trades under the ticker EFC. Ellington Financial is a real estate investment agency that specializes in commercial mortgage loans and mortgage-backed securities. The company ensures profits for investors by utilizing a series of risk management tools to mitigate the natural risks that come with mortgage backed securities. In their recent quarterly report for Q4, the company showed a consecutive increase in EPS for the 3rd time in a row which was already up 38% from the previous quarter. For the full year of 2020, EPS came out to be 39 cents per common share on a total net income of $17.2 million.
Ellington pays out a regular dividend which is common for most real estate investment trusts. Despite the current Ellington has been able to maintain regular dividend payments throughout the last two years. Back in march the payout dropped from 15 cents per common share down to 8 cents. Since then, The company has been increasing its dividend payout gradually and current payments are 10 cents per share with 7.6% yield.
Covering the stock is Maxim Analyst Michael Diana who believes Ellington is one of the strongest picks in his mortgage REIT coverage. “EFC’s equity is allocated 85% to credit assets, and almost all have done well. Of particular note are non-QM loans and reverse mortgage loans. Not only has demand for these credit classes been high, but EFC also has material equity stakes in the companies that originate these loans; thus, EFC profits twice. With smaller mortgage companies going out of business because of the competition has decreased, leading to favorable pricing.”
The analyst goes on to rate EFC a buy with a $19 price target suggesting an increase of around 20% near term. If we take a look at what other analysts on wall street think we can see that they are also bullish with a $17.25 average price target for a 9% increase in upside potential.
The next dividend stock is Devon Energy which as its name suggests is in the energy industry. Devon Energy works in north america's most productive oil regions and controls over 10,000 wells with 752 billion barrels of oil reserves. In their fourth quarter 2020 report, Devon produced 333,000 barrels of oil daily which was a 7% increase from quarter to quarter. They also yielded a cash flow of $773 million dollars for the fourth quarter, 34% of which was free cash flow. As for their dividend payment, Devon Energy pays 11 cents per share along with an additional variable dividend of 19 cents per share.
#Dividend #Dividendstocks #BestDividendStocks #CathieWood #Investing
DISCLAIMER:
I am NOT a financial Advisor. This video is for entertainment and education purposes only. This video is not financial advice. You can lose money investing into the stock market. You are liable for any losses that you incur from investing in the stock market.. I shall not be held liable for any losses you may incur while investing or trading on the stock market. Contact a licensed financial professional in your area for professional advice.
AFFILIATE DISCLOSURE:
This video and description may contain affiliate links, which means that if you click on one of the product links, I’ll receive a small commission
